We have all experienced price objections in the past. The absolute best way to overcome price objections is to do it before an objection is raised. Our company is known as the highest priced company in our area. We have intentionally positioned ourselves that way. So, people know we are the highest before they ever call. Many companies attract price shoppers because their message is says "we're cheap!". Even after you have mastered the positioning process, you will still get price resistance and that's okay. What's important is that you know how to handle it.
Don't Get Defensive
Never get defensive about your price. The first step in any objection is to get them to explain what they mean. In other words, don't just start defending the objection. Say "what do you mean?". This way, you have the opportunity to understand what is in their mind. Then feed it back with a question: "What I hear you saying is "
There are many, many ways to overcome price objections. Here are 4 that work well.
1. Review the value or service experience
Before you quote your price, make sure that you have thoroughly covered the uniqueness of your service. Once you have developed a script that covers the values and unique benefits of doing business with your company, you can review these values with your client to insure that you have "buy in". Ask your client "Is it important that the company you work with is ( ) ?" or "Is it important to you that the company you choose, does ( ) ?" By reviewing the benefits and values, you may uncover hidden objections. This process reminds and refocuses clients on why they are buying your service and why you may charge more than someone else. If they say that your benefits aren't important to them, and you do not offer what they want, then you must choose whether to give them what they want, or realize that you have attracted someone that is not your client.
For example, you sell your service based on Reputation, Experience, Education, Systems and Guarantee. The client balks at the price. You say "Mrs. Jones, is it important that the company you do business with has a great reputation?" She responds. "Is it important that the company you choose offers a money back guarantee?" If she says "yes", then you have a chance of convincing her that to get those benefits, she may have to spend more. If she says "no", you may have attracted someone that is not your client. So, asking the question "Is it important to you that ( ) " causes them to review their value system. If they answer yes to each of the questions, then talk about how each one of those values cost a great deal to maintain - that there is a reason that the other guys are cheap. If they are cheap, then they are skimping on an extremely important value.
2. Change the Scope of the Job
If you get a price objection, don't be tempted to just slash the price. When you do that, you lose credibility. You basically just told the customer that you were willing to overcharge them. Instead, review the job and see if there are parts of the job that can be done at a later date. By changing the scope of the job - settling for a smaller job instead of slashing prices, you are still getting your full price. This is important for your branding and positioning and it is important to charge a profitable rate.
Say "we could forego this part this time. You need to do it, but you could wait to get this part of the job done." Usually, when your client sees that you are willing to work with them, they will often say "Oh, just go ahead and do all of it."
3. Offer a Free Trial
Another strategy to use when you have a price objection is to "prove" that you are better. Offer to do a sampling of the job at no charge and no obligation. Remember that the free trial offer is really "permission to market", so put on a show!! By giving them a no- risk way to taste before buying, you have the opportunity to move them closer to the sale.
This works great with upholstery, tile & grout, leather, and other profitable add on services as well.
4. Let them know you accept credit cards.
Sometimes your client really wants your product, but just needs to work out their finances. Offering payment plans or accepting credit cards may give them the flexibility they are looking for. Even wealthy clients and professionals use credit cards to manage their money. American Express will go to bat against a vendor if a client has a complaint.
If you don't take credit cards, they may not go with you because they feel that they may not have any recourse if the job doesn't turn out right. Also, don't forget that people LOVE airline miles that they get with their credit card purchases. Not accepting credit cards tells your customer that you are behind the times. Accepting credit cards will also pave the way for you to make more upsells.
One last tip
Never quote your price until you have told your prospect what you are going to do for her. In other words, if someone says "How much do you charge?", don't just answer the question. The reason it is a big mistake to answer the question without outlining what you do first is the only thing she has to judge your price by is what she has experienced in the past.
If you are REALLY better, then you need to demonstrate VALUE first. Say "I'll be glad to help you with that. I will need to ask you just a few questions first, is that okay?"
Then ask all of your interview questions to discover the felt needs. After that, outline how you are going to solve the perceived problems and build the value of what you and only you do. As you present your solution, ask your client if this "sounds like" what they are looking for. Now when you quote the price, you have something you can go back to for review. TO LEARN MORE ABOUT PRICING, GET THE FAST TRACK PRICING FOR PROFIT MODULE.
Phenomenal Products, Inc.